SC Rejects Plea on Mutual Fund Ads

New Delhi, Dec 12 (PTI) The Supreme Court on Friday refused to entertain a plea which alleged that advertisement campaigns like 'mutual funds sahi hai' are misleading and create a false impression of assured financial safety in mutual fund investments.

A bench of Justices Vikram Nath and Sandeep Mehta was hearing a petition challenging an order of the Bombay High Court in September this year.

The high court had dismissed a PIL seeking a direction to the Securities and Exchange Board of India (SEBI) to revoke the liberty granted to the Association of Mutual Funds in India (AMFI) for carrying out investor education and awareness initiatives/programmes.

The petitioner had told the high court that the AMFI should be restrained from continuing its advertisement campaigns titled 'mutual funds sahi hai', 'mutual funds mein SIP sahi hai' and 'be patient and stay invested'.

He had claimed before the high court that these campaigns neither educate the investors nor disclose the risks inherent in the sale and purchase of mutual funds.

The petitioner, who appeared in person before the apex court, told the bench that the high court had taken a "hasty decision".

The bench said his similar PIL was dismissed by the high court earlier. It said the top court had in July this year dismissed his plea challenging that order of the high court.

"That was a separate PIL on a slightly different issue. It was dismissed on maintainability, not on merits," the petitioner said.

While refusing to entertain his plea, the bench said, "Don't worry. Let the others bother for themselves".

The high court had dismissed his PIL in September this year, observing that the petitioner had not placed on record any data to substantiate his claim of how investors were being allegedly misled and in what number by such advertisements.

"There is no data from government or reliable sources which would otherwise show the gravity and seriousness involved. In these circumstances, the lack of material details, either accidental or deliberate, is sufficient to dismiss this PIL," the high court had said.